HIGHLIGHTS OF THE GOVERNOR’S PROPOSED 2005-06 BUDGET FOR MENTAL HEALTH RELATED PROGRAMS

 

SSI-SSP Cost of Living Increase (COLA)

Again, the cost of living increase for aged, blind and disabled is on the chopping block.  The governor proposes to permanently suspend the state COLA of 4.6% and not pass through to recipients the federal COLA of 2.3%.  Both were scheduled to take effect January 1, 2006.   The total budget proposed for this program is $3.5 billion, reflecting a 1.1% increase ($79.1 million) from 2004-05 to allow for caseload increase in the program. 

 

REALIGNMENT

Realignment funding for 2005-06 is estimated to be $1,220,438,000.  This is an increase of 1.6% ($19,474,000) from the amount anticipated for 2004-05.  The funding would come from:

Sales Tax - $835,285,000 (deposited in the Mental Health Subaccount)

Vehicle License Fee Account - $365,679,000

Vehicle License Fee Growth Account - $19,474,000

 

AB 2034 – Integrated Services for Adults

No change from current year funding.  Remains at $55 million.

 

In-Home Supportive Services (IHSS)

The budget proposes to reduce IHSS workers wages from the current $10.10 per hour to $6.75, the state’s minimum wage for a savings of $194.8 million in 2005-06 and $216.8 million annually thereafter.

 

Medi-Cal

The governor proposes a complete overhaul of Medi-Cal.  His redesign proposal includes charging monthly premiums to families on Medi-Cal whose incomes are slightly above the poverty level. He also proposes to move more aged and disabled into managed health care programs.

 

Children’s System of Care (CSOC)

This program would be continued at the current year’s funding of $350,000 for the Cathie Wright Technical Assistance Center.  The budget does not reinstate the $20 million that was eliminated in 2004-05.

 

Early and Periodic Screening Diagnosis and Treatment (EPSDT)

The budget proposes an increase in reimbursements of $47.5 million from the Department of Health Services.  This includes a State General Fund increase of $27,232,000 and an increase of $20,255,000 in Federal Financial Participation.

 

Early Mental Health Initiative

The budget proposes to reduce this program from $10 million to $5 million.

 

AB 3632

The budget proposes to continue funding for AB 3632 at $69 million provided by federal IDEA funds plus $31 million in SELPA funds.  The Governor proposes to suspend the claiming mandate on counties which means that counties providing services above their allocation of the $69 million would not be eligible for SB 90 reimbursement.

 

State Hospitals/Sexually Violent Predators (SVPs)

The budget proposes a savings of $9,200,000 in level of care staffing and operating expenses by reducing the number of beds for SVPs by 100.  The California Department of Mental Health said that the savings is “the result of an effort to implement statutory changes that will require the transfer of 100 pre-commitment SVPs from the state hospitals back to local jurisdictions pending the final adjudication of their SVP commitment.”

 

Further budget information can be found at www.dof.ca.gov

 

Grace McAndrews
Executive Director
NAMI California

January 13, 2005

 

 

 

DATE:               January 10, 2005

TO:                  CCCMHA, MHAC, CCMH and ACCESS Coalition

FROM:              Adrienne Shilton, Staff

RE:                  Governor’s 2005-2006 Budget Proposal

 

Additional budget summary information.

Most significant actions in the Governor’s proposed 2005-06 Budget regarding Mental Health related programs:

 

Realignment

For Fiscal Year 2005-06 it is estimated that a total of $1,220,438,000 will be available for mental health services. This is an increase of $19,474,000 (1.6 percent) from the amount anticipated for Fiscal Year 2004-05. This amount does not include the estimated $14,000,000, which may be made available from the Vehicle License Account.  The total of $1,220,438,000 in realignment funding will come from the following sources:

• Sales Tax $835,285,000 (deposited in the Mental Health Subaccount)

• Vehicle License Fee Account $365,679,000

• Vehicle License Fee Growth Account $19,474,000

 

MediCal

Governor proposes completely overhauling Medi-Cal and moving toward a managed care system.  Currently there are approximately $3.2 million Medi-Cal beneficiaries enrolled in managed care plans.  Funding for managed care plans has increase from $3.4 billion in 1990-00 to $5.6 billion in 2005-06. 

If you would like to learn more, California Health and Human Services Agency Secretary Kim Belshe has scheduled two meetings for interested persons and  organizations for a briefing on the Schwarzenegger Administration's plan to overhaul the State's Medi-Cal program, on January 13 in Sacramento and January 21 in Los Angeles. The two meetings will have identical briefings by the State Medi-Cal program officials and also Secretary Belshe. 

 

SACRAMENTO MEETING

January 13, 2005 - Thursday afternoon

1:00 PM to 3:00 PM

Department of Health Services Main Auditorium

1500 Capitol Avenue, Sacramento, CA 95814

RSVP for January 13 Meeting (seating is LIMITED)

Call toll-free at 888/452-8609 or email:  MCRedesign@dhs.ca.gov  no later than January 11.  If you are unable to participate in person, you can participate via toll free conference call line by calling:  1-800/857-9668   Passcode:  "Medi-Cal Redesign".